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PAHC vs. GEHC: Which Stock Is the Better Value Option?
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Investors interested in Medical - Products stocks are likely familiar with Phibro Animal Health (PAHC - Free Report) and GE HealthCare Technologies (GEHC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Phibro Animal Health has a Zacks Rank of #2 (Buy), while GE HealthCare Technologies has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that PAHC likely has seen a stronger improvement to its earnings outlook than GEHC has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PAHC currently has a forward P/E ratio of 14.06, while GEHC has a forward P/E of 18.85. We also note that PAHC has a PEG ratio of 0.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GEHC currently has a PEG ratio of 2.90.
Another notable valuation metric for PAHC is its P/B ratio of 3.89. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GEHC has a P/B of 4.80.
These are just a few of the metrics contributing to PAHC's Value grade of A and GEHC's Value grade of C.
PAHC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PAHC is likely the superior value option right now.
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PAHC vs. GEHC: Which Stock Is the Better Value Option?
Investors interested in Medical - Products stocks are likely familiar with Phibro Animal Health (PAHC - Free Report) and GE HealthCare Technologies (GEHC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Phibro Animal Health has a Zacks Rank of #2 (Buy), while GE HealthCare Technologies has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that PAHC likely has seen a stronger improvement to its earnings outlook than GEHC has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PAHC currently has a forward P/E ratio of 14.06, while GEHC has a forward P/E of 18.85. We also note that PAHC has a PEG ratio of 0.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GEHC currently has a PEG ratio of 2.90.
Another notable valuation metric for PAHC is its P/B ratio of 3.89. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GEHC has a P/B of 4.80.
These are just a few of the metrics contributing to PAHC's Value grade of A and GEHC's Value grade of C.
PAHC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PAHC is likely the superior value option right now.